When it comes to fund products with stable income and anti-inflation, everyone will definitely think of REITs, so do you really make money by investing in REITs? Are there any risks? Below we have prepared relevant contents for your reference.

Do you make money by investing in REITs funds?

First of all, we should know that REITs fund is a kind of fund that invests in the real estate industry. Therefore, when the real estate market is stable and the rental income is stable, you can get considerable income. The following are the possible benefits of REITs fund investment:

1, FFO returns: Some REITs funds use FundsfromOperations(FFOs) when calculating returns, that is, net working capital, which is usually higher than their actual profits in order to pay higher dividends.

2. The rental income is relatively stable: REITs funds are mainly used to invest in real estate, including office buildings, shopping centers, medical facilities and other different types of real estate. These properties will be paid by tenants, and the rental income is relatively stable.

3. Dividend income: REITs funds can provide relatively high dividend income because they must pay at least 90% of the net income to shareholders.

In a word, investing in REITs funds is profitable, and it will get stable and considerable income.

Are there any risks?

1. interest rate risk: the return of REITs funds is closely related to interest rates. If the interest rate rises, investors may find that the dividend return rate decreases, which will have a negative impact on the future earnings performance of REITs funds.

2. Real estate cycle risk: The real estate market is affected by cyclical fluctuations, and tenants are more likely to default on a large scale during the economic recession, which may lead to a decline in dividends of REITs funds.

3. Tenant's breach of contract: Tenants' failure to pay rent or leaving the property early may have a negative impact on the income of REITs Fund.

Generally speaking, REITs fund is a reliable way to invest in the real estate industry, which has both risks and opportunities.